As of press time, Dow Jones rose by 0.23%, Nasdaq rose by 0.03%, and the S&P 500 index rose by 0.2%.

After the results of the U.S. presidential election were determined, the U.S. stocks soared, and all three major indices are expected to achieve strong gains for the week. Trump's election has raised expectations of deregulation and tax cuts, which may benefit U.S. economic growth.

By the close of trading on Thursday this week, the S&P 500 index has risen by about 4.3%, while the Dow Jones has risen by about 4%, with both on track to achieve the largest weekly gains since November 2023. During this period, the Nasdaq has risen by 5.6%.

Julian Emanuel, an analyst at the independent investment bank Evercore ISI in the United States, stated that the U.S. stock market bull run is still in its early stages, and the stock market will accelerate during the upcoming Trump presidency. He mentioned that the S&P 500 index will reach 6,600 points by the end of June next year, implying an 11% increase from the current level.

Emanuel pointed out that Trump's measures to relax institutional regulations may help boost corporate profits. He noted that data shows that bull markets typically rise by 152% over an average of 50 months, while the current market has only risen by 65% over the past 25 months, indicating that it is still in its infancy.

In addition, Evercore's strategy team analyzed data and found that a government with a one-party sweep (simultaneous control of both houses of Congress by one party) is actually most favorable for U.S. stocks.

Currently, the Republican Party in the United States has regained control of the Senate, and is also temporarily leading in the House elections, with the prospect of winning control of both houses.

According to the latest news, the Republican Party in the USA appears to continue to control the House of Representatives, completing a hat-trick after turning the tables on the Senate and the White House in the 2024 election cycle. Out of the 408 announced seats in the House of Representatives (out of 435), the Democratic Party won 198 seats, while the Republican Party won 210 seats. The party that first obtains 218 seats will win the majority.

Investors generally believe that, given the relaxation of regulations, increased potential for mergers and acquisitions, and proposed tax cuts, among other factors, having the Republican Party simultaneously control the government and both houses of Congress will be more favorable for the market. However, concerns about the massive federal deficit and increased import tariffs have also raised worries about rising inflation.

The Federal Reserve officials unanimously decided to cut the federal funds benchmark interest rate by 25 basis points on Thursday, in line with market expectations.

The Federal Reserve adjusted its policy statement wording, indicating that the 'overall labor market conditions have eased', while reiterating that 'the unemployment rate has risen but remains low'. The statement removed the expression of further progress in inflation and noted that inflation 'has made progress toward the Committee's 2% target but still slightly higher'.

Jerome Powell, Chairman of the Federal Reserve, stated in a press conference that he 'feels good' about the economy. He also emphasized the strength of the U.S. economy and mentioned that he neither rules out nor supports a rate cut in December.

Powell also mentioned that the elections will not have an immediate impact on policies, and even if Trump asks, he will not resign because 'the law does not allow it', and the president does not have the authority to do so.

Kerry Craig, Global Market Strategist at JPMorgan Asset Management, stated: 'The meeting will not change the Fed's view that they are still on a path of rate cuts. Unless there is a significant unexpected rise in inflation and labor market data, there may be another rate cut in December.'

Barclays economists released research reports on Thursday after the Federal Reserve's rate decision, stating that considering the U.S. election results and potential policy directions of the Trump administration, they have revised their previous estimate of three rate cuts next year to two, each by 25 basis points.

The team led by the chief U.S. economist Marc Giannini of the institution stated that they still expect a 25 basis point rate cut in December, but believe that this cut may result in intense contention, with an increased risk of pause.

Well-known financial journalist Nick Timiraos, also known as the 'New Fed Communication Agency', stated this week that Trump's election victory is unlikely to affect the Federal Reserve's monetary policy stance. If the Republicans continue to 'sweep' (winning both the Senate and the House), the December meeting may amend the wording regarding 'basic assumptions'.

Dow Securities stated on Friday: "It is anticipated that the future policies of U.S. President-elect Trump will lead to a delay in the Fed's interest rate cut, prompting us to adjust our expectations for Fed policies in 2025."

Bret Kenwell of eToro stated: "Powell and his team remind investors that the foundation of the U.S. economy remains solid. Powell did not disclose whether the Fed might cut rates in December. However, the Fed seems more confident about the labor market and the current U.S. economic backdrop than a few months ago."

Scott Helfstein, Director of Investment Strategy at Global X ETFs, stated: "Compared to the week before the election, there are darker clouds on the Fed's rate cut path today."

Helfstein said: "The market believes that the Trump administration will favor growth and risk assets, but the combination of faster growth and new import duties will lead to inflation. While the Fed believes that the risks between price stability and maximum employment are balanced, this situation could change rapidly, increasing the risk of a resurgence in inflation."

Focus stocks

Growth tech stocks fluctuated, Tesla rose over 3%, Taiwan Semiconductor rose nearly 1%, and Apple rose slightly.

Chinese concept stocks generally trended lower, Ke Holdings fell more than 6%, Alibaba, JD.com, and Nio Inc fell more than 4%.

$Tesla (TSLA.US)$ Up more than 3%, the stock price broke through the $300 mark, accumulating over 22% increase this week.

$Taiwan Semiconductor (TSM.US)$ Up more than 1%, with a 29.2% year-on-year growth in October revenue, the US government subsidies are expected to accelerate implementation.

$Upstart (UPST.US)$ Rising more than 39%, Q3 revenue increased by over 20% year-on-year, with Q4 revenue guidance surpassing expectations.

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